ST opinion: Windfall gains from selling flats should be taxed

[kobayashiGT]

Source: https://www.straitstimes.com/opinion/forum/forum-windfall-gains-from-selling-flats-should-be-taxed

The Straits Times' associate editor Chua Mui Hoong wrote an excellent piece on returning the Housing Board to its original mandate (Returning HDB to its roots of building homes, not short-term assets, June 25).

It resonates with the letter I wrote to the Forum in December suggesting that focus be placed on the resale market to address the lottery conundrum in public housing (Focus on resale market to address public housing issues, Dec 21, 2020), as well as the opinions of many other writers on how to address this inequitable phenomenon.

As Ms Chua aptly pointed out, windfall gains that go to those who could afford high-priced Build-To-Order flats in the first place defeat the purpose of subsidised public housing. It is therefore pertinent that taxes of some sort be levied on such capital gains.

Ms Chua's suggestion of treating such gains (on the sale of all subsidised HDB flats in all locations) as income is a brilliant idea, as this mechanism promises to give precisely the equitable effect that is sought.

In the same way that the additional buyer's stamp duty and other property cooling measures were rolled out fairly quickly in various stages, is it not possible to tackle this facet of the lottery effect while the authorities continue to seek and digest public feedback on a new/enhanced public housing model?

It is quite unbelievable that the number of HDB resale flats costing more than $1 million has been on the rise, with 87 sold in the first five months of this year.

[Throttle2]

Totally agree becos hdb flats is built by Taxpayers.

already mentioned before long ago in this forum.

People should not be allowed to simply profiteer from HDB sales

of course, there will be some selfish low integritystupid  people who are simply out to plunder, yet got no money for private markets. 
these kind are like leeches misusing our nation’s resources and subsidies to their sole advantage.   This kind will not agree lah

hopefully, govt can be swift and pass this tax on HDB sales so that monies are rightfully and equitably returned to the system which is beneficial to all.   Especially since it was extracted from the system to begin with.  

Edited June 29, 2021 by Throttle2

[Stary]

No lo...I don't agree lo....

if you do this, then those get million dollar profit from the condo/landed sale how? private one no tax but public flat got tax? 

The world is never fair. Human luck is also not the same for  everyone.   Some people will earn more from their hdbs, some will earn less.  Accept it and move on lo.

 

[Jamesc]

Asking the gov to tax us more?

If I was the gov I will say

"OK lah since you all ask for it."

[Jamesc]

7 minutes ago, Starry said:

No lo...I don't agree lo....

if you do this, then those get million dollar profit from the condo/landed sale how?

Tax them too.

Just to be fair not that they want to.

[Jamesc]

Next thing someone will say COE too low.

Since you all say too low increase lah.

(Faster blanket party anyone that say COE too low)

[Jamesc]

If anyone wanted my opinion.

Less tax better.

[Jamesc]

If anyone wanted my opinion.

As cars make people happy

no tax on used car business.

[13177]

Tax all tax all, whether it is hdb or private. 

[Watwheels]

The way this person put it is like seller pocket the full 1mil and no need to find another place to stay.

Edited June 29, 2021 by Watwheels

[Wt_know]

i disagree ... i have not sell my HDB yet leh ... everyone tasted the cherry liao some more my colleague tasted 2nd pop liao ... 

ok ... tomorrow lower my price is $995K ... my loss is your gain!

Edited June 29, 2021 by Wt_know

[Kopites]

4 minutes ago, mikk123 said:

poor people only way to make some $$$ is through HDB sale lah....Rich people can buy and sell private property of any sorts. Just tax the poor and close one eye on the rich? Any policy maker will think thrice about implementing such tax. Don't forget, election is due in 2 years? 

It will impact everyone be it public or private. Bearing in mind upgrader making a certain percentage of pte property sales.

Those mass market condo.😄

[kobayashiGT]

Erm. I am selfish in this context cause I haven't bought my first HDB yet and I am worried that I cannot afford one. So tax please!

9 minutes ago, mikk123 said:

poor people only way to make some $$$ is through HDB sale lah....Rich people can buy and sell private property of any sorts. Just tax the poor and close one eye on the rich? Any policy maker will think thrice about implementing such tax. Don't forget, election is due in 2 years? 

But then again, @mikk123 is right also. 😂

 

[Wt_know]

7 minutes ago, Kopites said:

It will impact everyone be it public or private. Bearing in mind upgrader making a certain percentage of pte property sales.

Those mass market condo.😄

sheep fur grow on sheep

if i need to pay $100K tax ... i gotta sell $100k higher

good luck to the future generation ... huat ah!

since when taxes make things cheaper? muahahahahaha

knee jerk reaction may be ... long term ... price go up ... to the moon 

in order to maintain same price ... 1200 sqft > 1000 sqft > 750 sqft > 500 sqft ... oops sound familiar

Edited June 29, 2021 by Wt_know

[kobayashiGT]

6 minutes ago, Wt_know said:

sheep fur grow on sheep

if i need to pay $100K tax ... i gotta sell $100k higher

good luck to the future generation ... huat ah!

since when taxes make things cheaper? muahahahahaha

knee jerk reaction may be ... long term ... price go up ... to the moon 

in order to maintain same price ... 1200 sqft > 1000 sqft > 750 sqft > 500 sqft ... oops sound familiar

Damn. I have found my home in the coming future le. 😭

https://www.decathlon.sg/p/8384152-108565-inflatable-camping-tent-air-seconds-41-4-person-1-room.html?queryID=733c69d3893f1538f532a9b484ad579d

Dunno should I get the east coast park lot, or the west coast park lot. hahaha.

[Kopites]

7 minutes ago, kobayashiGT said:

Damn. I have found my home in the coming future le. 😭

https://www.decathlon.sg/p/8384152-108565-inflatable-camping-tent-air-seconds-41-4-person-1-room.html?queryID=733c69d3893f1538f532a9b484ad579d

Dunno should I get the east coast park lot, or the west coast park lot. hahaha.

Of course great southern front with hugh potential pending.

 

Edited June 29, 2021 by Kopites

[kobayashiGT]

22 minutes ago, Kopites said:

Of course great southern front with hugh potential pending.

 

https://goo.gl/maps/ox6Bps7bi5nbdYEA8

I found a good spot. Maybe I will buy a kayak, I can paddle to sentosa and save my entry fee. 🤣

[Hydrocarbon]

32 minutes ago, Wt_know said:

if i need to pay $100K tax ... i gotta sell $100k higher

good luck to the future generation ... huat ah!

since when taxes make things cheaper? muahahahahaha

While the tax on the profits of sale sounds good (in principle), in reality, I think what you say will happen.

If the seller has to pay a higher tax, all they'll do is ask for a higher price.

However, one thing might happen is that since the suggestion is based on the couple's income / taxed as income, this means that different sellers would have different taxes levied on their HDB sales profit. This could mean that buyers can still hunt for good deal from sellers with lower income tax (staying in the same block / area / something), and this might make the sellers with higher income tax drop their pricing a bit more / absorb the taxes instead of passing it down to the buyers.

Or it might just make the sellers with lower income tax price their unit similar to the sellers with higher income tax, maybe minus a bit to sell their house faster. This seems to be more likely.

Ah well, this HDB issue has been decades in the making. Don't think it will be resolved any time soon. I've resigned myself to using more lube on my backside.